BILL NUMBER: AB 734	CHAPTERED  09/15/99

	CHAPTER   402
	FILED WITH SECRETARY OF STATE   SEPTEMBER 15, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 15, 1999
	PASSED THE ASSEMBLY   AUGUST 26, 1999
	PASSED THE SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   AUGUST 19, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999
	AMENDED IN ASSEMBLY   APRIL 8, 1999

INTRODUCED BY   Assembly Member Romero

                        FEBRUARY 24, 1999

   An act relating to community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 734, Romero.  Community colleges:  finance.
   Existing law establishes the California Community Colleges under
the administration of the Board of Governors of the California
Community Colleges.  Existing law authorizes the establishment of
community college districts under the administration of community
college governing boards, and authorizes these districts to provide
instruction at community college campuses throughout the state.
Existing law requires the Chancellor of the California Community
Colleges to calculate the revenue level of each community college
district in accordance with a prescribed procedure.
   This bill would require the Board of Governors of the California
Community Colleges to report to the Legislature and the Governor on
prescribed issues relating to community college financing, and to
attempt to provide this report on or before January 15, 2000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) In 1986, Assembly Bill 3049 of the 1985-86 Regular Session
(Chapter 1465 of the Statutes of 1986) called for a comprehensive
review of community college financing based on the reform proposals
of the Commission for Review of the Master Plan for Higher Education.
  The recommendations of the review were transmitted by the
Chancellor of the California Community Colleges to the Legislature in
1987, and were subsequently adopted in Assembly Bill 1725 of the
1987-88 Regular Session (Chapter 973 of the Statutes of 1988).
   (b) That review resulted in a restructuring of the community
college financing system, aimed at making it more consistent with the
status and role of the colleges as postsecondary institutions.  The
new structure was based on a program-based funding formula that
weighed various categories, such as instruction, instructional
services, student services, maintenance and operations, and
institutional support.  In addition, multicollege district and small
district factors were considered in funding formulas, as well as
equalization funding for districts below the program-based funding
standards.
   (c) After a decade of experience, it is appropriate to review the
funding structure in order to ensure that it provides access to
high-quality educational services to California students irrespective
of the college or district at which they are enrolled.  To that end,
the Chancellor of the California Community Colleges has convened a
broad-based task force on community college funding formulas to
address issues related to program-based funding, enrollment growth,
equalization, cost-of-living adjustments, and noncredit instruction.
For example, the task force will consider whether districts with
significant underserved adult populations receive appropriate weight
in enrollment growth allocation formulas.
  SEC. 2.  Notwithstanding Section 7550.5 of the Government Code, the
Board of Governors of the California Community Colleges shall report
to the Legislature and the Governor on community college financing.
In preparing the report, the board of governors shall consider
issues regarding program-based funding criteria, the enrollment
growth funding formula, the equalization funding formula, the
cost-of-living adjustment, and funding formulas for noncredit
instruction.  The board of governors shall attempt to provide this
report to the Legislature and the Governor on or before January 15,
2000.  The report shall identify any budgetary changes or statutory
modifications necessary to accomplish the recommendations of the
board of governors.
